President Ferdinand Marcos Jr. is holding off on suspending or reducing fuel excise taxes, with Malacañang emphasizing that the legal conditions for such a move have not yet been met despite rising global oil prices.
Communications Undersecretary and Palace Press Officer Claire Castro said the government is already reviewing possible scenarios, but any decision must align with parameters under a pending measure.
“The President can only act and decide based on the recommendation of the DBCC,” she said, referring to the Development Budget Coordination Committee.
Under the proposed law, the President may suspend or reduce excise taxes only if Dubai crude averages more than $80 per barrel for at least 30 consecutive days.
Castro explained that while oil prices have recently breached the $100 mark, the required duration has not yet been reached.
“Ayon kay (Finance) Secretary (Frederick) Go, wala pang 30 days sa ngayon. Pero ngayon pa lamang ay inaaral na ang kondisyon.”
She also noted that excise taxes are imposed at the point of importation, limiting their immediate effect on pump prices.
“Kung walang maaangkat, wala tayong mapag-uusapang excise tax,” Castro said.
Malacañang assured the public that the government stands ready to act once conditions are satisfied, noting that the measure is designed to allow quicker intervention to ease fuel costs.
Earlier, Marcos described the decision to adjust excise taxes as a “very complicated calculation,” citing the need to balance fiscal stability with consumer relief amid volatile global oil markets driven by tensions in the Middle East.